The April 2026 Energy price drop: What you need to know

As of April 1st, the energy price cap has fallen to £1,641. That’s a 7% drop, saving the average household about £10 a month. But before you crank up the heating, here’s the 'tenant-proof' breakdown of what’s actually happening.

The big numbers:
The new average bill is roughly £137 per month. However, this is not a total limit. The 'cap' is on the unit rate, not your final bill. 

Why did it fall?
It’s not just market luck. The government has officially moved "Green Levies" off your utility bills and into general taxation. This policy shift alone saved you roughly £150 this year.

The "Standing Charge" trap
While the cost of the gas and electricity you use went down, the electricity Standing Charge (the daily fee just to stay connected) actually rose slightly to 57p per day.

The takeaway:
Even if you live in a tiny studio and use almost no power, your fixed costs remain stubbornly high.

Quick actions for tenants:

• Take a meter reading: Do it today. Ensure your supplier isn't charging you March’s higher prices for April’s energy.
• Watch for July: Analysts predict prices may rise again in July. If you see a good 12-month fixed deal, it might be time to lock it in.